GBPUSD finds buyers ahead of the 100 day MA/swing area | Forexlive

The GBPUSD had been a laggard to the upside (lower dollar) as BOEs Bailey was neutral in his assessment of the forward monetary policy. Nevertheless, the price did move higher, dragged up by the EURUSD perhaps (and the overall dollar selling).

However, in the early North American session, the price of the GBPUSD started to rotate back to the downside (higher USD), and with yields moving higher (the 10 year has reached 4.0%), and some technical breaks the downside, the price has reversed and trades lower on the day.

Looking at the hourly chart, the move to the downside turned more negative below the 200 and 100 hour moving averages (at 1.2035 and 1.20208 respectively). Moving below the swing year between 1.1988 and 1.2010 was also a bias shift to the downside.

However, as the price approached the 100 day moving average (currently at 1.19593), there has been some stall. The low price reach 1.1964 and currently trades back up at 1.1993 between the swing area.

What next?

Watch the 1.2000 level as close resistance (perhaps up to 1.2010). Stay below keeps the sellers more in control.

Conversely move back below 1.1988 with more momentum, and a another run toward the 100 day moving average cannot be ruled out.

Recall on Monday, the price dipped below the 100 day moving average AND the 200 day moving average (the 200 day moving average is down at 1.1922 currently), but could not sustain momentum. That failure helped to lead to the sharp reversal to the upside. On Monday and continuing into Tuesday. The high price on Tuesday stalled near the high price from last week, before reversing lower..